Discounted Management Fees – A False Saving?
“Buy two, get one free!” “Down down, prices are down.” Australian consumers, are increasingly encouraged to view value through the lens of ‘cheapness’. But as anyone who has bought a no-name brand version of their favourite chocolate bikkies will know, the cheaper version is rarely the best version of a product or service. Too often, landlords fall into a sense of false economy when it comes to the management of what in many cases is their most valuable investment after their own home. That’s partly because they are broadly focused on ‘race to the bottom’ for property management fees, rather than finding the best value for money.
Particularly new Investment House Owners, have asked Nigel Lucas of Property Management at Ray White Burpengary and Caboolture whether the Property Management Fee can be discounted by 1%? To put this into perspective this requested discount, for a $500 a week House, equates to a tax deductible ‘saving’ of $5 a week equivalent to the cost of a Cup of Coffee. But what are the risks of going with a Discount Brand / Property Manager?
Relationships and Communications Count
So many tenant-landlord relationships falter due to miscommunication and frustration. Seasoned Property Managers at Ray White Burpengary and Caboolture will have knowledge and know how to handle this. A good Property Manager will actively develop a two-way relationship with your tenant, leaving lines of communication open. This openness and timeliness of response means that tenants and landlords are assisted by their property manager to work together and to achieve outcomes that benefit both parties.
Safe and Sound
No landlord benefits from unwanted vacancies. A good property manager will do all they can to ensure that your property is on a secure lease. This is not always possible (as tenants cannot be compelled to renew their leases), but is always advantageous for landlords. Capable Property Managers with systems and support are able to closely monitor these time periods and understand the methods to secure tenancy agreements in a timely manner. One of the Key Performing Indicators (KPI) that Ray White Burpengary and Caboolture look at in evaluating our performance in key markets such as Dakabin, North Lakes, Morayfield or Caboolture is our portfolio vacancy rate.
Strategic Tenancy Terms
At Ray White Burpengary and Caboolture our Property Managers thinks strategically about seasonal vacancies. Christmas is the worst time for property vacancies – a savvy property manager will negotiate longer leases in an attempt to break the pattern of Christmas vacancy moving forward. Clever, right? It’s experience and a holistic view of leasing that allows a good manager to think this way.
The art of Negotiation
A good property manager is never passive: they are born negotiators. They will negotiate favourable and fair outcomes in relation to maintenance costs and ongoing expenses, working with trusted service partners to deliver sensible quotes and quality deliverables in equal measure. With a sizable Property Management portfolio in various locations including Rothwell, Elimbah, Kallangur and Bellmere, Ray White Burpengary and Caboolture’s experienced Property Managers leverages our buying power to the community of trades.
So remember if you think it’s expensive to hire a professional to manage your property – wait until you hire an amateur!
To maximize the rental return on your Investment in Moreton Bay Region, contact Nigel Lucas on 0413 351 603 or email firstname.lastname@example.org